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what credit card should i get?

Old 02-26-08, 10:38 AM
  #26  
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Originally Posted by Indy_Rider View Post
I think this pretty much covers it.

http://consumerist.com/consumer/clip...ord-252491.php
Couldn't have said it any better.
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Old 02-26-08, 10:55 AM
  #27  
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Originally Posted by donnamb View Post
Not one penny should you carry over.
Funny...I thought I heard Master Yoda...

Oh, yeah plus, I think Dave Ramsey has it right too. Wish I would have had that kind of direction when I was younger (and dummer). We are working towards debt free (except house) but probably not as aggressively as Dave would.
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Old 02-26-08, 11:14 AM
  #28  
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I carry only one credit card and pay off its balance in full each month.
I keep a small balance on my equity line of credit just to keep it "active".
I use cash for all my day to day purchases and transactions.
I have no other outstanding debts.
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Old 02-26-08, 12:18 PM
  #29  
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Originally Posted by markjenn View Post
Lots of considerations here depending on whether you plan on carrying a balance, grace periods, what rebates (if any) you want, etc.

I'd do a net search and look at all the angles. For each type of user, there are good recommendations, but it varies depending on your personal situation.

I recently converted most of my credit card buying over to a Capilal One "No Hassle Rewards" card because they are one of the few cards that don't surcharge (2-3%) foreign purchases when they do the currency exchange. I got really sick of paying this surcharge every trip to Canada. It has a 1% rebate, but it's not a good card if you carry a balance or miss a payment.

- Mark
As he said, he's not really looking to use it, just to gain a credit history.

Capital One may work if you already have established credit, but I'd be very wary of getting one as a first card. A guy I carpooled with sent in an application, got a call asking for more info. He in turn asked them to mail him more information based on what they told him, but instead of information they sent a card with a $75 bill for the annual fee.
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Old 02-26-08, 12:29 PM
  #30  
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Originally Posted by Jerseysbest View Post
Cash only and credit card Nazi's in 3...2...1...
I am half way there haha. I have a cc for online purchases etc. But use it sparingly. As a bankrupcy sufferer (my own doing) I need the cc to build my credit back up, I still don't like using it .
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Old 02-26-08, 11:03 PM
  #31  
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Originally Posted by Indy_Rider View Post
People who can manage their money (have common sense) are not the ones paying for his classes and buying his books. He takes advantage of the stupid just like the CC companies.
Not if you get the books from the library.

Originally Posted by aprilm View Post
Aren't banks supposed to report activity on checking accounts? If that's the case, and he has no credit, I wouldn't get a credit card from his current bank.
Sadly, I think they only report if it's been overdrawn.

Originally Posted by iamlucky13 View Post
As he said, he's not really looking to use it, just to gain a credit history.
Of course, but a great many people get started down the wrong road by doing exactly that. Just gotta be careful and go into it fully aware...
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Old 02-27-08, 12:15 AM
  #32  
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Originally Posted by aprilm View Post
Aren't banks supposed to report activity on checking accounts? If that's the case, and he has no credit, I wouldn't get a credit card from his current bank.
Nope, banks don't report on checking accounts, unless you overdraw and don't pay them off. It's not a credit account so won't even show up on your credit report. Order your free one now and check; you won't see any of your bank accounts on there.

Originally Posted by donnamb
Yes, yes, a thousand times yes! Not one penny should you carry over. Ever. Deduct the amount from you checking every time you make a purchase. Go over the card agreement with a fine tooth comb.

Never, ever let them take you. I am not a religious person, but I'm in absolute agreement with Dave Ramsey when he says about credit card companies, "If you play with snakes, you will get bitten."
This message is nearly as bad as the ones urging you to spend more than you have.

Debt isn't bad. I don't know what Ramsey's message is, but if it's "never, ever carry debt; debt is evil" then I agree with those who think he's an idiot and/or taking advantage of people.

You pay for your stuff, like bikes, right? What's wrong with paying to use someone else's money? you're paying for the convenience of having something right now. If it's worth it to you, then it's OK to use debt. The bad part comes in where you don't make your plan to pay off this debt or where you can't really afford to "buy" this convenience, just like you couldn't afford to buy anything else you want.

Think of debt as any other thing you purchase, which is essentially what it is. You're purchasing the convenience or instant gratification. Can you afford it? If so, good for you; if not, don't use the debt.

I guess there is some logic in paying for the expert to tell you what you already know in your heart... just like paying for a gym membership or Jenny Craig or Weight Watchers or the like.
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Old 02-27-08, 12:21 AM
  #33  
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I have a great credit card from the Motley Fool. It has 8.9% interest, and cash back, but I forget what percentage it is.

My other card is from a credit union, and I've been happy with it. Never tried any shenanigans. I've quite using many of my cards because they don't give enough turn around time, or for some reason it takes over a week for me to get the bill and another week for them to receive payment. But since the date on the envelope isn't there, I can't prove that they're playing games.

Basically, that means I have to pay the bills the day I get them to assure they won't be late, and I travel too much to do that.

Don't get a card where you have to pay a yearly fee.

Points are lame, too. They generally equal cash back, and you may as well take the cash and buy your own plane ticket.
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Old 02-27-08, 03:18 AM
  #34  
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Originally Posted by solveg View Post
I've quite using many of my cards because they don't give enough turn around time, or for some reason it takes over a week for me to get the bill and another week for them to receive payment. But since the date on the envelope isn't there, I can't prove that they're playing games.

Basically, that means I have to pay the bills the day I get them to assure they won't be late, and I travel too much to do that.

Don't get a card where you have to pay a yearly fee.
You can probably pay your cards on line, without waiting to get a bill in the mail, and without waiting for your check to make its way back through the mail system. All my credit cards have that option, and I use it.

I agree about the yearly fee.
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Old 02-27-08, 09:43 AM
  #35  
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question

so to raise my credit rating, is it best to pay it off or leave a little balance to collect interest?
sorry for the dumb question.
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Old 02-27-08, 09:56 AM
  #36  
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Originally Posted by skiahh View Post
You pay for your stuff, like bikes, right? What's wrong with paying to use someone else's money? you're paying for the convenience of having something right now. If it's worth it to you, then it's OK to use debt. The bad part comes in where you don't make your plan to pay off this debt or where you can't really afford to "buy" this convenience, just like you couldn't afford to buy anything else you want.

Think of debt as any other thing you purchase, which is essentially what it is. You're purchasing the convenience or instant gratification. Can you afford it? If so, good for you; if not, don't use the debt.
Just remember, compounding of interest works against you with debt just as much (acutally more because usually credit card rates are higher) as it does for you with savings/investments. So you can choose to save money and have interest work for you or borrow money and have it work against you. Your choice. I happen to think one choice is smarter than the otherf (though I haven't always followed it) .
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Old 02-27-08, 10:03 AM
  #37  
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Originally Posted by bikeslikes View Post
so to raise my credit rating, is it best to pay it off or leave a little balance to collect interest?
Not a dumb question.

I doubt carrying a balance vs. paying it off makes any difference with your credit ratings, although credit agencies move in mysterious ways, so I can't say for sure. Carrying a balance does affect how desirable you appear to the credit card company, so if you do carry a balance, you're a prize fish, but I don't think the credit agencies know whether you're carrying a balance or paying off the full amount each month.

Mostly what I've seen on my credit reports are lots of entries noting whether bills are paid on time or late. I think that's the key thing - hold the line of credit for an extended period and religiously pay your bill on time, whether you pay the minimum or pay it off. NEVER be late, even by a day. Some people even advise that you pay your credit card bill twice each month - pay the minimum due immediately when you get the bill to be absolutely sure the money gets there in plenty of time, then pay the balance (or whatever more than the minimum you're paying that month) a week or so before the due date. I have never gone to this extreme, but some do just to give them maximum insurance they will NEVER be late.

But there's a better reason never to carry a balance: ridiculous fees and interest. While some play shenanigans with getting deals on low-interest credit cards, the general rule of thumb is to never use credit cards as a loan. Get a card that charges no interest within the 25-day grace period and pay it off each and every month. You are actually interest ahead since you're deferring paying for things for up to six-weeks or so.

What most people don't realize is that with most cards, the first time you start carrying a balance, then the finance charge will accrue on your average daily balance (ADB), so the whole 25-day grace period goes out the window - you start paying interests on the entire amount you charged from the time of purchase. So that first time you don't pay your balance in full, you're going to get absolutely nailed on finance charges.

As an extreme example, say you charged $10K of purchases in a month on a card with a 15% interest rate (not uncommon). If you pay $10K by the due date, you won't pay a penny in interest. But if you pay $9,999 and leave a balance of $1, then the finance charge the following month will be on your ADB for the entire month, NOT on the $1 you didn't pay. So if you're ADB was $5K on the $10K in charges, then you'll pay $62.50 in interest (15%/12 x $5K) the next month just because you carried a balance of $1 from one month to the next. That one month loan of $1 just cost you $62.50 in interest, which computes to an annual rate of 75,000%!

- Mark

Last edited by markjenn; 02-27-08 at 10:11 AM.
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Old 02-27-08, 03:39 PM
  #38  
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Originally Posted by bikeslikes View Post
i need a credit card to help build my credit(just got denied for a home loan due to lack of credit)
whats a good one to get? i have no issues paying bills ect, who knew id get punished for not needing one.
Kinda answering a question with a question, but: did you try to get a loan through a company that does manual underwriting? It basicly the old way banks used to work. If you pay all your bills on time or early, the same with your rent for at least two years, you should qualify for a prime mortage. Most lenders only use the FICO method because it's faster and cheaper for them to put in a couple of numbers and pop out an answer.
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Old 02-27-08, 10:03 PM
  #39  
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info

it was with bank of america. i sat there and gave them all my employment, housing info ect. they told me id get a letter or call in a couple days but a week later i got a letter of denial. its probably best. i signed up for a discover card today and plan to pay it off on time every month.
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Old 02-27-08, 10:04 PM
  #40  
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Originally Posted by bikeslikes View Post
so to raise my credit rating, is it best to pay it off or leave a little balance to collect interest?
sorry for the dumb question.
You can pay it off in full and still build good credit.
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Old 02-27-08, 10:25 PM
  #41  
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My credix be good mother****er.
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Old 02-28-08, 10:15 AM
  #42  
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Originally Posted by deraltekluge View Post
You can probably pay your cards on line, without waiting to get a bill in the mail, and without waiting for your check to make its way back through the mail system. All my credit cards have that option, and I use it.

Online automatic payments... So easy its stupid.
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Old 02-28-08, 11:52 AM
  #43  
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Originally Posted by Jerseysbest View Post
Online automatic payments... So easy its stupid.
So easy that it makes one forget to look closely at the bill and verify the charges. About once a year, I note a discrepancy on my bill that requires some follow up - a double-charge, a credit that never appeared, a mis-placed digit, etc. And with the ID theft issues, I'm always watching my cards for anything suspicious. You can certainly inspect the bill online as well (and more often), but you have to have the discipline to do it.

And I'm always nervous authorizing yet another 3rd-party to arbitrarily take money out of my checking account.

- Mark
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Old 02-28-08, 06:14 PM
  #44  
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Originally Posted by markjenn View Post
So easy that it makes one forget to look closely at the bill and verify the charges. About once a year, I note a discrepancy on my bill that requires some follow up - a double-charge, a credit that never appeared, a mis-placed digit, etc. And with the ID theft issues, I'm always watching my cards for anything suspicious. You can certainly inspect the bill online as well (and more often), but you have to have the discipline to do it.

And I'm always nervous authorizing yet another 3rd-party to arbitrarily take money out of my checking account.

- Mark
Totally true, but I'm pretty OCD with my money. I go through my bill and current activity at least a few times a month if not more; sorting through charges, seeing where my money's going, seeing if I can cut back anywhere, etc.
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Old 02-28-08, 07:01 PM
  #45  
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Originally Posted by Jerseysbest View Post
Totally true, but I'm pretty OCD with my money. I go through my bill and current activity at least a few times a month if not more; sorting through charges, seeing where my money's going, seeing if I can cut back anywhere, etc.
Yes, if auto bill paying is a way to simply not have to write a check and not worry about bill due deadlines, then it's a good idea. But as a way to put your bill-paying on auto-pilot so you can forget about the account, pretty dangerous. I'm not as good as you about voluntarily checking things, so the monthly bill-paying session is always the forced time to look things over. Nobody gets the money until I explicitly write the check.

- Mark

Last edited by markjenn; 02-28-08 at 07:09 PM.
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Old 02-28-08, 11:28 PM
  #46  
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I do not do automatic payments of my cards...I look at the account statements and activity before paying each one.
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Old 02-29-08, 12:33 PM
  #47  
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I don't trust automatic payments. One use I use a credit card for is protection against fraud should some merchant I'm using get their stuff broken into. Merchants losing databases is becoming very common these days because so many crooks realize that there is big money to be made there.
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Old 02-29-08, 03:22 PM
  #48  
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Originally Posted by mlts22 View Post
I don't trust automatic payments. One use I use a credit card for is protection against fraud should some merchant I'm using get their stuff broken into. Merchants losing databases is becoming very common these days because so many crooks realize that there is big money to be made there.
I don't do auto-pay either, but the risk of your someone breaking into you Visa account with Chase or Capital, or any of the big credit card companies is probably minimal. Like identify theft, your biggest risks of credit card info theft is with small merchants, your unlocked post office mailbox, and the waiter you hand your card to. Big institutions have lots of controls in their system that are missing when you get down to the small players.

As an example, I'd be nervous as hell doing auto-bill pay for something like a local health club membership. But Capital One? Wouldn't be a concern to me.

- Mark
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Old 02-29-08, 03:38 PM
  #49  
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Originally Posted by Indy_Rider View Post
Dave Ramsey is an idiot getting richer off of idiots that can not manage money. He is really no better than the credit card companies. People who can manage their money (have common sense) are not the ones paying for his classes and buying his books. He takes advantage of the stupid just like the CC companies.
dave ramsey is not to blame. he is only providing a product that apparently is in great demand. stupid people will always lose money. if it's not dave ramsey or credit card companies then they will spend their money on lottery tickets or whatever.
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Old 03-01-08, 03:37 PM
  #50  
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Although they are not the premier credit card issuer I would suggest checking out Capital One's cash back card. They have a 1% cash rebate, no tiers like some others and they add a 25% bonus to the accumulated rebate in November. Also, if you use the card in a foreign country they DO NOT charge a foreign transaction fee. There's no annual fee either. That is usually 1%-3% additional on other cards. I've been a fairly devoted user of another card but I recently opened this one as my daughter is studying abroad this semester and I wanted a card without the foreign transaction fee. As far as credit cards go, if you get one, pay the balance in full prior to the due date, no ifs ands or buts and you'll do yourself and credit rating a great favor.
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